Tesla down sharply on string of bad news, from a 15% sales drop in California to worries about Cybercab
Tesla is trading down more than 7% today, and that’s only its second-worst day this month — a month that began with auto tariffs going into effect. While Tesla, which assembles its vehicles in the US, is largely escaping the consequences of the first set of auto tariffs, the electric vehicle maker has had plenty of other bad news that’s weighed on it lately. Most recently:
Tesla’s sales last quarter dropped 15% in California (its biggest sales state in the US, which is its biggest sales country). Meanwhile, sales of all other EVs rose 35% in the state.
The Information reported that CEO Elon Musk canned the long-awaited $25,000 low-cost model in exchange for the Cybercab, which internal reports show might never be profitable.
Reuters reported that President Trump’s tariffs on China forced Tesla to suspend shipments of parts for its highly anticipated Semi and the aforementioned Cybercab, jeopardizing future product lines on which the company’s high stock price is built.
Oh, and the stock is facing a death cross, an ominously named technical pattern that could signal further losses.
None of that is to mention that there’s a downdraft happening in the stock market — and tech stocks more acutely — with the Nasdaq down more than 4%. That’s no doubt hurting Tesla.
Tesla releases earnings next week, when investors will find out just how much Tesla’s record drop in deliveries hurt its bottom line.
Tariffs on parts, which will more directly affect Tesla, go into effect May 3. It’s not clear if Trump’s suggestion of auto tariff relief will help Tesla there or not.
